I'm an W2 employee of a staffing agency, currently doing work for one client. After my hire the client revised their confidentiality agreement to include a noncompete clause (no contract work allowed for direct competitors during my contract w/this client). I am not on retainer, so I feel this is not appropriate; should my hours drop w/this client to where I can't pay bills, I need to solicit additional work. Staffing agency told me I am W2 with them so I am not an independent contractor and should sign. I feel that's irrelevant; in the end, I'm the one whose income is threatened. I am not an employee of the company asking me to sign a noncompete. What do you think? Note that the agency, the company, and I are all based in different states and I telecommute.
Never sign a noncompete if you do not have to and always assume that the noncompete would be enforced by a court. Although the courts in North Carolina say they do not like noncompetes, they routinely enforce appropriately drafted ones. Frankly, many employees have no choice but to sign because the employer will not hire them or will terminate them if they do not sign.
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